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16.07.2021 •
Business
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Ответ:
If the company chooses to buy the wheels, income will increase by $69,000.
Explanation:
First, we need to calculate the total relevant cost of production:
Relevant cost of production:
Total cost= direct material + direct labor + avoidable overhead
Total cost= 36,000 + 54,000 + (27,000 + 45,000)
Total cost= $162,000
Now, the total cost of buying the wheels:
Total cost= 180,000*0.8 - 51,000= $93,000
Difference= 93,000 - 162,000= -$69,000
If the company chooses to buy the wheels, income will increase by $69,000.